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Shares of Orexigen (OREX +16.7%) are soaring after Credit Suisse initiates coverage with an...

Shares of Orexigen (OREX +16.7%) are soaring after Credit Suisse initiates coverage with an Outperform, saying it likes the prospects of a trial that will look at the cardiovascular impact of Contrave. Leerink Swann also recommends investors buy it aggressively. Meanwhile, it starts Arena Pharmaceutical (ARNA -4.6%) with an Underperform , saying Belviq may not generate enough revenue to justify the stock's current valuation.
Comments (22)
  • eviljoe35
    , contributor
    Comments (92) | Send Message
     
    mindless dribble to manipulate the price. this is SEC material for investigation
    6 Sep 2012, 04:01 PM Reply Like
  • eviljoe35
    , contributor
    Comments (92) | Send Message
     
    a stock without FDA approval gets a higher evaluation than one that has FDA approval? are you kidding me? EU approval is also on the way for ARNA with a soon to be launch and a 65 million dollar payment also!
    6 Sep 2012, 04:03 PM Reply Like
  • RHMASSING
    , contributor
    Comments (224) | Send Message
     
    It is unbelievable that the WS brokerage houses are no longer even subtle in their obvious bias to serve their hidden agenda. Imagine to give an underperformance rating to arna which has a FDA approved drug, a partner with presense in the US ready to launch the marketing of the drug and also has a manufacturing facility approved to produce the drug. In other words every huddle is overcome for readiness to market the drug and CS gave it a target of $6 when it was already selling at over $9! Then in the same vein, CS can, with a straight face, recommends OREX to ourperform. when the trial is at least a year away and then FDA must approve it for marketing, so it is at least two years away even if everything works out as planned for Contrave to be on the market. It is mind boggling to see how our financial sysyem works. No wonder Warren Buffet said a few days ago that the system is rigged agains small investers. How true. If ARNA is such an "unworthy" stock, why CS wants to put in their resources to initiate coverage with the underperform rating. CS could have left it along. So the idea must be to promote OREX and down played ARNA in the same space. Such crooked practice.
    6 Sep 2012, 04:14 PM Reply Like
  • 214
    , contributor
    Comments (14) | Send Message
     
    if we only knew whether their system had a large short position that needs to be covered
    6 Sep 2012, 07:10 PM Reply Like
  • josh555
    , contributor
    Comments (10) | Send Message
     
    RHMASSING, you said that perfectly. Either I am missing something, or this just plain stinks.
    6 Sep 2012, 04:33 PM Reply Like
  • josh555
    , contributor
    Comments (10) | Send Message
     
    If they dont think there will be enough total sales of obesity drugs combined which was stated in the Credit Suisse report for any blockbuster drugs, than why are they increasing VVUS and OREX prices?
    6 Sep 2012, 04:49 PM Reply Like
  • user418
    , contributor
    Comments (196) | Send Message
     
    Something stinks a Credit Suisse!!!!!!!!! Wouldn't it be interesting to know what the in house stock position was in Orex before this came out.
    6 Sep 2012, 05:43 PM Reply Like
  • nurturechef
    , contributor
    Comments (3) | Send Message
     
    Somebody wants to purchase "ARNA" a lot cheaper - This is a rig job if i ever saw one....who are they kidding! Most of the time on a downgrade - the stock will bounce to the down side and then back up. - great way to make easy cash!!!!!!!!!!!!!!!
    6 Sep 2012, 07:00 PM Reply Like
  • nurturechef
    , contributor
    Comments (3) | Send Message
     
    I don't see anyone else doing that...why me??
    6 Sep 2012, 07:00 PM Reply Like
  • ejh1
    , contributor
    Comments (8) | Send Message
     
    Let me see, Arena has an approved diet drug and Orexigen has no approved diet pill or any guarantee of getting one is that right?
    6 Sep 2012, 07:01 PM Reply Like
  • Pharmacist$$$$
    , contributor
    Comments (35) | Send Message
     
    I laughed when i read the report this morning
    6 Sep 2012, 07:04 PM Reply Like
  • 11601
    , contributor
    Comments (4) | Send Message
     
    ya, but ya gotta cry when the uninformed react as if they (CS) are the only authority - just have to look at it as a buy opportunity
    7 Sep 2012, 12:39 AM Reply Like
  • KillinMe
    , contributor
    Comments (37) | Send Message
     
    Re: josh555... Could not have said it better. It is counterintuitive for Credit Suisse(CS) to make that statement. And just as RHMASSING stated, Orexigen upgraded despite the company burning cash on ongoing clinical trials WHICH ARE STILL IN THE ENROLLMENT PHASE and will MAYBE result in FDA approval IN ABOUT 2 YEARS. The company has no big partnership to shoulder the costs of the trials and has no existing revenue stream.
    Arena is the polar opposite...it has an approved drug, European Union approval coming in mere weeks, a strong safety profile-vs-Vivus' Qsymia, a partnership with big company Eisai, who is carrying virtually all marketing/production costs, issuing milestone payments in the millions to Arena AND diversifying Belviq further into even more corners of the international market. Arena also has had facilities in production of Belviq for months awaiting DEA classification upon which Belviq will be selling, mostly WORLDWIDE, years before Orexigen even resubmits Contrave to an FDA review panel.
    The powers that be should absolutely check for a conflict of interest at work here. What is Credit Suisse's or its representative's exposure to any of these drugs? To low-ball the stock price of a pharma company with such stellar current progress and huge short and long term upside and to raise the target of a "company" based on a product that isn't even close to market is absolutely laughable.
    6 Sep 2012, 07:09 PM Reply Like
  • NYorkerinUT
    , contributor
    Comments (24) | Send Message
     
    This is another jaw-droppingly criminal stunt that will unfortunately go unpunished. At least there's another buying opportunity.
    6 Sep 2012, 07:09 PM Reply Like
  • hawaiismk
    , contributor
    Comments (5) | Send Message
     
    It just shows that there are plenty more scumbags that will do anything to cheat people out of money. Welcome to the Scumbag's club of Wall Street Kolowski.....
    6 Sep 2012, 07:57 PM Reply Like
  • crozz
    , contributor
    Comments (298) | Send Message
     
    Has anybody of you guys actually read the CS report?
    I did not, so I cannot really assess the validity of their conclusions.
    If one looks at the market cap, then Arena is 4-5 times more expensive/valueable than Orexigen.

     

    I guess Arena is the better company, given all the positives that all you guys mentioned. But maybe it is just worse in terms of value for money. What equity analysis is all about.

     

    Maybe it is even better to be the second-mover and not the first-mover.

     

    These equity analyst are very respectable and knowledgeable guys. Many of them are CFAs, so they have to abide by the CFA codes of ethics. I cannot imagine that they would do such a horrible thing as talking down a stock just to make some money on short selling. They would risk to lose their CFA designation.
    6 Sep 2012, 08:22 PM Reply Like
  • KillinMe
    , contributor
    Comments (37) | Send Message
     
    Are you being facetious? To "prophecized" the value of a pharma company to double its current stock price based solely on ONE drug that is still in the enrollment phase of clinical trials and that has already once been rejected by the FDA is highly questionable at best, especially when Credit Suisse actually DOES have exposure to Arena Pharmaceutical stock to the tune of about 120K shares. Now, is the hammer going to come down when CS purchases another lot of shares on the pullback they manipulated? And watch all the negative articles that will piggyback off of the INITIATED coverage...not a DOWNGRADE...just initiated coverage. Case in point... The Street this morning, surely by coincidence, "reiterates" its SELL rating on Arena stock for the 15th time in a month. It is naive to think that the CFA "code of ethics" gets in the way of market manipulation. It happens every single day but it is very difficult to prove.
    7 Sep 2012, 07:44 AM Reply Like
  • chanthirani
    , contributor
    Comments (464) | Send Message
     
    The reason the market cap for Arena is more expensive than Orexigen is because Arena's drug already has FDA approval. Orexigen is at least a year away from TRIALS which means that approval is not guranteed.

     

    As for risking to lose their CFA designation, you get around that by proper wording, in this case, "Belviq MAY not generate enough revenue to justify the stock's current valuation." (capitals mine) (Oh, gee, I said, MAY, I did not say WILL). As for stock valuation, that is not an exact science. If everyone agrees that the price of a stock is $X, then what would the market do? There would be no one buying or selling the different stocks at different prices.
    6 Sep 2012, 09:21 PM Reply Like
  • 11601
    , contributor
    Comments (4) | Send Message
     
    The whole system is a sham. It is so overtly manipulated that WS's brazenness continues with impunity. One would think that as the middle class slowly erodes, the one last vesage of capitalism (investing in equities) could be left intact for Joe Average on Main Street to try to maintain the illusion of the American Dream - and I'm Canadian! Shame........ I guess one would have to have the resources and audience of... say... someone like Cramer to have a chance in this venue...... Shame.....
    7 Sep 2012, 12:30 AM Reply Like
  • New Superhuman
    , contributor
    Comments (1182) | Send Message
     
    Guys, you should all be thanking the short sellers and bashers for driving the price down. When the price drops, scale into long positions. When the price rises again which it will, scale out of your long positions and take profits.

     

    Rinse and repeat. Thank you shorts and bashers!!! You guys are making me very rich!!
    7 Sep 2012, 12:33 AM Reply Like
  • 11601
    , contributor
    Comments (4) | Send Message
     
    Perhaps after CS's obvious tactics we should downgrade them to a 'disregard' from 'was once respected opinion'?
    7 Sep 2012, 12:39 AM Reply Like
  • KillinMe
    , contributor
    Comments (37) | Send Message
     
    Everybody take note of all the negative articles regarding Arena Phamaceuticals that will piggyback off the Credit Suisse article. See already The Street's sell rating reiteration on Arena stock already this morning based on poor revenue!! LOL Shocker...their product is awaiting DEA classification before sales can commence. Of course the company has no "revenue stream" as of yet!! Cramer. How many times has that particular article been posted on SeekingAlpha by the way? That article and the one that states every other day that Arena was the lead laggard dragging down the bio-pharm sector are posted constantly by the The Street. Hmmm, pretty strange giving that much credit to such a tiny company with no revenue stream. To drag down an entire sector? Please...
    7 Sep 2012, 07:44 AM Reply Like
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